AUTHOR: TOWNE SCHERER.COM/BLOG2/22/2019: TowneScherer Private Wealth Management BLOG:
Bad News for Bears
And that’s bad news for bears, says a 2/20/2019 story from MarketWatch, concerning the future of the New York Stock Exchange market (NYSE). The story points to the NYSE advance/decline (A/D) line touching an all-time high on Wednesday, which is a widely used signal for the health of the stock market. Further, the story quotes Paul Schatz, the president of Heritage Capital, with this comment, “bear markets never, ever, ever begin when the A/D line is making an all-time high.” In addition, the story also credits The Woodbridge, a Connecticut based investment manager, with this observation....the A/D line “is historically 90% accurate in predicting large-scale bear markets.”
After a historic pullback in the markets this recent December, it is amazing that current factors like the condition of the A/D line are suddenly surfacing.
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The opinions expressed in this material do not necessarily reflect the views of LPL Financial and based on the political content of this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in this material may not develop as predicted. All indices are unmanaged and may not be invested into directly.
Russell E. Towne, LPL Financial Advisor, is a registered representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.